Bell-Park (9441) Q4 2024 earnings summary

Executive summary

• Revenue increased 0.5% year-over-year to ¥116,038 million in 2024, with operating profit up 20.7% and net profit attributable to shareholders up 33.4%.

• Growth was driven by higher mobile device and accessory sales, stock revenue, and strong corporate solutions performance, despite increased personnel and promotional expenses.

• Store network rationalized, with the number of carrier shops declining from 349 to 333.

• Focused on hiring experienced personnel and improving employee retention, with full-time employee ratio rising above 80%.

Financial highlights

• Operating income increased 20.7% to ¥4,263 million; ordinary income up 21.9% to ¥4,352 million.

• Net profit attributable to owners of parent grew 33.4% to ¥3,177 million, aided by compensation from store closures and tax incentives.

• Gross profit improved to ¥26,911 million, up from ¥24,876 million in 2023.

• SG&A expenses increased due to higher personnel and sales promotion costs.

• Total assets reached ¥50,663 million (+¥3,128 million YoY); net assets: ¥34,166 million (+¥2,243 million YoY).

Outlook and guidance

• FY2025 forecast: net sales of ¥114 billion (-1.8% YoY), operating income of ¥4.5 billion (+5.5% YoY), and profit attributable to owners of parent of ¥3 billion (-5.6% YoY).

• Planned mobile phone sales for 2025: approx. 1,129,000 units, down 3.4% YoY.

• Lower net profit expected due to absence of one-time compensation and tax incentives.

• Dividend payout ratio to be maintained at or above 30%.

• Recurring service revenue expected to rise.